The crypto project BitClout has been the talk of the town for a good month now. BitClout revolves around celebrities and is supposed to offer them a new social network where they can speculate with reach. A lot of it smells like scam.
Many an attempt has been made in the crypto industry to hijack the principle of social networks and turn it into money. Voice by EOS is probably the best-known failure and is currently trying to reinvent itself; Voice’s former platform is already offline after a few months. BitClout is the name of the latest craze in social networking plus crypto and takes its cues from Twitter. However, BitClout’s whitepaper reads quite convoluted. And there are other details about BitClout that make you shake your head.
BitClout wants to make celebrities tradable
But first things first. By itself, BitClout wants to establish an exchange for posts and profiles on its social network. To get the project off the ground, 15,000 high-reach Twitter celebrities have already set up accounts with BitClout that can be claimed by them via a simple message on Twitter. Through this mechanism, BitClout hopes to gain a lot of attention quickly. Verified celebrities are then allocated BitClout Creator Coins. Others can buy BitClout Coins against Bitcoin, currently a good 160 US dollars per BitClout Coin is called for in Bitcoin.
The BitClout currency can be used to speculate on the ups and downs in the reach of celebrities or to bet on individual posts and their impact. According to the white paper, this is organized in a tamper-proof manner via a blockchain similar to that of Bitcoin, and the maximum number of all BitClout coins is also to remain limited. However, it is quite questionable whether the intended market will even emerge. As far as we know, BitClout is not traded anywhere outside of its web presence, and trading movements are not directly visible on the platform itself.
In that, you better leave your hands off BitClout.
It is not only a lack of transparency and a barely comprehensible whiteparer at BitClout, which automatically calls for caution. BitClout also has no imprint, no address and not even names of founders. In addition, there is the shrillest alarm siren: At BitClout, it is currently only possible to deposit (in Bitcoin), a re-exchange of BitClout Coins into Bitcoin and the payout are simply not provided for. In the meantime, celebrities have already spoken out, who were surprised to see their names misused on BitClout. The approach of somehow making celebrities tradable may still have a certain appeal. But on Twitter, BitClout also had to announce just today that it had lost a lot of content. Due to all the suspicious circumstances, we can only advise against investments in BitClout loudly, clearly and urgently.